Will buyer’s regret hit real estate market?
It’s no secret that people selling homes, cottages and properties these days are holding all the cards.
Every time a property goes on the market, especially one with a move-in ready home or cottage, there are multiple showings booked and offers to match. In most cases, properties are going for above asking price and
And the ridiculously white-hot state of the real estate market isn’t only in Muskoka; it’s a widespread state of affairs in communities throughout the province.
It can be extremely frustrating for those individuals and families who have been saving up their down payment and making plans to make their move. One couple I spoke to – who are just outside of the GTA – put their home on market in late 2019 because it was finally time to make the “Muskoka move.”
Well, it sold, but then the pandemic hit and suddenly there were multiple bids on absolutely everything in this region. They’ve been living at their parents’ place for almost a year now, priced out of market by buyers who don’t care how much they spend because they’re panic-buying to escape the city.
And it isn’t just couples or families like this one; there are plenty of homegrown stories where a young couple is priced out of the housing market in their own community.
Or families moving in with older parents because they want to return home and be close to their loved ones, but the market is out-of-whack.
In other cases, established families looking at adding a cottage or making waterfront living permanent no longer can compete with the buyers who are throwing their fear money at every single listing.
It’s actually sad state of affairs that those who have longed to be in Muskoka and made real plans to do so, as well as those who have been living in Muskoka for years, can’t find a home of their own.
For those in a similar situation, it can hopeless. But don’t despair because there may be a light at the end of the tunnel.
Looking at many expert forecasts, although 2021 will continue to see scorching markets, 2022 and/or 2023 could usher in a soft to medium landing in the real estate sector. What that means is the demand for over-priced properties will see a reduction and there will either be a holding pattern with property values or a slight dip in those values.
Speaking on conditions of anonymity with several real estate agents across the region – and beyond – we are likely to see a few things happen in the next couple of years which could see more houses go on the market at reasonable prices (depending on one’s definition of reasonable)
One of those things is more people wanting to live in the GTA or other cities as restrictions are loosened amid mass-vaccinations taking place.
There are also those with wanderlust who re-routed their travel budgets into a cottage property due to COVID but will yearn for foreign lands as soon as they feel safe to fly again.
While the latter examples are merely speculative, there is a lot of confidence in this prediction: within three years several properties will go on the market due to “buyer’s remorse.”
Who would have remorse about buying in Muskoka?
Well, many people who purchased property in Muskoka for the sole purpose of running away from COVID.
They had no real emotional attachment here; they don’t care to be part of the community; they have no respect when out shopping, eating, driving or when doing anything; they will not find anything to enjoy doing because they’re only in Muskoka to run away from a virus.
Although not every property purchaser in the past year is in that category, there are quite a few who fit the bill. Eventually, they will long for whatever place they came from and move back as soon as possible – of course, they will wait until the pandemic is done.
So, for those of you who truly have Muskoka in your hearts but continue being outbid or priced out of the real estate market, hang on and be as patient as possible. Being able to buy that home or cottage you’ve been saving up for is coming . . . it’s just a matter of time.
By Chris Occhiuzzi, for HuntersBayRadio.com
GOT A HOT TIP OR STORY YOU WANT US TO COVER?
Send a message to firstname.lastname@example.org